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Optimize the Structure of Public Fiscal Expenditure and Promote the Innovation of Social Governance (No.83, 2019)


By Wang Weijin, Institute for Public Administration and Human Resources, DRC & Jiao Changquan, Beijing Normal University

Research Report, No.83, 2019 (Total 5583) 2019-5-31

Abstract: Based on fiscal expenditure data from 2007 to 2017, this paper analyzes the characteristics and future trend of China’s social governance development. Results show that fiscal expenditure has exceeded that on education and health care, two major livelihood issues, and social governance is playing an increasingly prominent role in promoting economic and social coordination and in enhancing high-quality development. Large fiscal input with rapid growth in social governance finds expression mainly in some indirect issues such as risk prevention, rather than direct matters such as public security and the handling of people’s complaints expressed in letters or visits. In terms of social protection including social assistance and social insurance, the former is waning while the latter is waxing. The major issue of social governance has shifted from conflict response to conflict prevention and the focus of social governance is now moved to urban and rural communities. Non-governmental organizations develop rapidly, whereas financial support is yet to be reinforced to invigorate social vitality. The responsibility for social governance expenditure is mainly shouldered by local governments, and “excessive decentralization” exists in some areas. In light of these facts, it is advisable to establish a prevention-based, service-oriented and social-protected mindset of social governance, foster the input-output awareness in terms of social governance, so as to improve the performance of social governance across the board.

Key words: social governance, social conflicts, public security, fiscal expenditure